Enlargement still faces big challenges
Commissioner for Agricultural, Rural Development and Fisheries,
outlined a number of pressing areas relating to enlargement, with
quality and administrative issues being highlighted.
In a generally upbeat speech, Fischler outlined his belief that an enlarged Europe represented more chance than challenge for both the agricultural sector and the food and drink industry which it supplies.
Fischler outlined two primary opportunities which he sees as being the most beneficial for these sectors: "Firstly, there is the enlarged single market, under which the EU-25's eleven million farmers will benefit from a consuming public of almost half a billion. And, coupled with an increase in purchasing power, which in the new Member States is currently growing at around twice as fast as it is in the EU-15, experts anticipate a sustained increase in demand in the new Member States in particular for value added, high quality, processed products such as meat or cheese.
"Secondly, there are the benefits afforded by free trade within such an extensive common market. The so-called 'double profit' and 'double zero' agreements have, in particular, played a crucial role in liberalising trade between old and new Member States in recent years. They have contributed to the increase in EU-15 exports of pigmeat to the accession countries, for example, which have gone up by over 100,000 tonnes since 1999.
Fischler also pointed out his belief that the phasing-in of the common market would cushion the impact of enlargement, highlighting the fact that it gives producers the time to adjust to market realities.
The issue of quality has always been a primary objective behind enlargement. Inextricably linked with that has been the issue of food safety. In relation to this, Fischler emphasised the EU's fight to ensure life stock safety and the prevention of animal-borne diseases."In meeting the demand for quality, livestock farmers in the EU-15 have a distinct advantage. Whilst the accession countries have invested massive efforts into preparing themselves for EU accession, and have made major progress in every aspect, they are still lagging seriously behind in key areas.
"Firstly, there are the continued administrative challenges, in terms of setting up the control mechanisms necessary for the day-to-day functioning of the CAP. Then there are crucial veterinary and hygiene standards that need to be reached and maintained: many abattoirs and processing facilities still require further upgrading. There is also the question of rural infrastructure which remains underdeveloped in many places. Marketing and promotion schemes are yet to be put in place, or are far from being used to their full capacity.
"And whilst this significant restructuring continues, livestock producers in the new Member States will find their potential severely limited. Regardless of whether farmers have fewer overheads and lower production costs, failure to meet EU production standards, particularly in the livestock sector, will severely hinder their potential: we simply do not have a market for goods that do not make the grade."
Fischler went on to highlight the plight in the various meat sectors, but throughout his stance on the issue of quality remained unswerving. Even some of the more advanced of the 10 accession countries have had trouble fulfilling EU requirements for 1 May. In Poland, for example, thousands of businesses in the dairy and meat sector are facing closure after accession and an estimated 10,000 workers in these sectors could lose their jobs.
Making specific reference to the poultry sector, Fischler highlighted how the accession countries had increased their exports to the EU-15 from 78,000 tons in 1994 to over 170,000 tons in 2003.
"However, in this sector, it is not enlargement that I see as the test," he said. "Indicators show that as spending power increases following accession, so too will the consumption of white meat. The challenge for European poultry producers as I see it, is to remain competitive on a world market which is witnessing the emergence of new and competitive producers in third countries. Quality, and added value, will play a key role in this respect."
Despite the given challenges, Fischler ended his speech on a upbeat note, highlighting the fact that accession was now on the right track and that the opportunities for producers will be abundant.
"Recent studies have also almost invariably concluded that the overall effects of EU enlargement on the agricultural sector will be positive. I know that Europe's farmers are able to respond to, and profit from, the opportunities on offer."
